Question

The management of Zigby Manufacturing prepared the followingestimated balance sheet for March, 2015:

ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2015
Assets
Cash	$	54,000
Accountsreceivable		354,375
Raw materialsinventory		100,495
Finished goodsinventory		333,000
Total current assets		841,870
Equipment,gross		628,000
Accumulateddepreciation		(164,000)
Equipment, net		464,000
Total assets	$	1,305,870
Liabilities and Equity
Accountspayable		212,195
Short-term notes payable		26,000
Total current liabilities	$	238,195
Long-term notepayable		514,000
Total liabilities		752,195
Common stock		349,000
Retainedearnings		204,675
Total stockholders’ equity		553,675
Total liabilitiesand equity	$	1,305,870

To prepare a master budget for April, May, and June of 2015,management gathers the following information.

a.	Sales for March total 22,500 units. Forecasted sales in unitsare as follows: April, 22,500; May, 19,500; June, 21,700; July,22,500. Sales of 254,000 units are forecasted for the entire year.The product’s selling price is $22.50 per unit and its totalproduct cost is $18.50 per unit.
b.	Company policy calls for a given month’s ending raw materialsinventory to equal 50% of the next month’s materials requirements.The March 31 raw materials inventory is 5,025 units, which complieswith the policy. The expected June 30 ending raw materialsinventory is 5,400 units. Raw materials cost $20 per unit. Eachfinished unit requires 0.50 units of raw materials.
c.	Company policy calls for a given month’s ending finished goodsinventory to equal 80% of the next month’s expected unit sales. TheMarch 31 finished goods inventory is 18,000 units, which complieswith the policy.
d.	Each finished unit requires 0.50 hours of direct labor at a rateof $10 per hour.
e.	Overhead is allocated based on direct labor hours. Thepredetermined variable overhead rate is $4.10 per direct laborhour. Depreciation of $30,790 per month is treated as fixed factoryoverhead.
f.	Sales representatives’ commissions are 6% of sales and are paidin the month of the sales. The sales manager’s monthly salary is$4,400.
g.	Monthly general and administrative expenses include $26,000administrative salaries and 0.5% monthly interest on the long-termnote payable.
h.	The company expects 30% of sales to be for cash and theremaining 70% on credit. Receivables are collected in full in themonth following the sale (none is collected in the month of thesale).
i.	All raw materials purchases are on credit, and no payables arisefrom any other transactions. One month’s raw materials purchasesare fully paid in the next month.
J.	The minimum ending cash balance for all months is $54,000. Ifnecessary, the company borrows enough cash using a short-term noteto reach the minimum. Short-term notes require an interest paymentof 1% at each month-end (before any repayment). If the ending cashbalance exceeds the minimum, the excess will be applied to repayingthe short-term notes payable balance.
K.	Dividends of $24,000 are to bedeclared and paid in May.

l.	No cash payments for income taxes are to be made during thesecond calendar quarter. Income tax will be assessed at 40% in thequarter and paid in the third calendar quarter.
m.	Equipment purchases of $144,000are budgeted for the last day of June.

Required:

Prepare the following budgets and other financial information asrequired. All budgets and other financial information should beprepared for the second calendar quarter, except as otherwise notedbelow. Round calculations up to the nearest whole dollar, exceptfor the amount of cash sales, which should be rounded down to thenearest whole dollar:

Cash budget. (Negative balance and Loan repayment amountshould be indicated with minus sign. Round your answers to 2decimal places.)

Calculation of Cash receipts from customers:
		April	May	June
Totalbudgeted sales		$506,250	$438,750	$488,250
Cashsales	30%	151,875	131,625	146,475
Sales oncredit	70%	$354,375	$307,125	$341,775
Total cash receipts from customers
		April	May	June
Current month'scash sales		$151,875	$131,625	$146,475
Collections ofreceivables		354,375	354,375	307,125
Total cashreceipts		$506,250	$486,000	$453,600

ZIGBY MANUFACTURING
Cash Budget
April, May, and June 2015
	April	May	June
Beginning cashbalance	$54,000	$116,745	$162,767
Cash receipts from customers	506,250	486,000	453,600
Totalcash available	560,250	602,745	616,367
Cashdisbursements:
Payments for raw materials	212,195	206,800	218,000
Payments for direct labor	100,500	106,300	111,700
Payments for variable overhead	41,205	43,583	45,797
Sales commissions	30,375	26,325	29,295
General & administrative salaries	26,000	26,000	26,000
Dividends		24,000
Loan interest	260
Purchases of equipment			144,000
Sales salaries	4,400	4,400	4,400
Long-term note interest	2,570	2,570	2,570
taxes paid	0	0	0
Totalcash disbursements	417,505	439,978	581,762
Preliminary cash balance	142,745	162,767	34,605
Additional loan (loan repayment)			19,395
Endingcash balance	$116,745	$162,767	$54,000
Loan balance
	April	May	June
Loanbalance - Beginning of month	$26,000	$0	$0
Additional loan (loan repayment)	(26,000)		19,395
Loanbalance - End of month	$0	$0	$19,395

THE FIRST PART IS DONE. THERE IS SOMETHING MISSING IN THE SECONDPART THAT I CANNOT FIGURE OUT. PLEASE JUST HELP ME FIND THE MISSINGPART. EVERYTHING ELSE IS CORRECT WITH THIS QUESTION AND ANSWER.PLEASE MAKE SURE TO DOUBLE CHECK YOUR ANSWER AS NO BODY HASANSWERED THIS CORRECTLY AFTER ASKING MORE THAN 10TIMES. THANKYOU